The ongoing standoff between Eskom and Glencore’s ferroalloys unit has put 12,000 jobs at risk as negotiations over electricity tariffs continue. (Photo: X) When electricity and energy minister Kgosientsho Ramokgopa told SABC news anchor Oliver Dickson that the government had been asked to step in to square the circle of Eskom’s electricity tariff deal with the ferrochrome industry on Wednesday, 8 April 2026, he probably didn’t expect it to be an octagon.
Over the following 24 hours talks between Glencore’s ferroalloys unit and Eskom over the vexed issue of electricity pricing have gone beyond the bell, with thousands of jobs on the line.
In an internal memo to employees seen by Daily Maverick that was issued on Thursday night, 9 April – the latest deadline in the unfolding drama – ferroalloys CEO Japie Fullard told all workers to report for their shifts today as the talks continued.
Keep calm and carry on
“We would like to update you on the latest developments regarding the proposed 62c/kWh electricity tariff for the South African ferrochrome industry and the related Section 189 process,” Fullard said.
The memo goes on to explain that discussions were currently ongoing as negotiations had not yet been concluded. With no final decisions made at that stage, Fullard said that all employees were required to report for duty as normal.
The issue that can be immediately identified as the sticking point from Glencore’s perspective was fully articulated by the minister.
Ramokgopa used the national broadcaster stage on the eve of the deal deadline that the power utility had delayed, to outline Eskom’s requirement for a five-year commitment to protect the utility from market volatility:
“What the detail lies in what are the conditions for the 62 cents... our proposal was that it should be for five years, so in that window you can[’t] opt out, otherwise we have subsidised you and you have raked in the returns. And when the the market forces are such that you are not doing well there could be a likelihood of pulling out, so what that means is that we’ve privatised the upside and we are socialising the downside.”
Another blow
Daily Maverick has also been informed that manganese smelter Transalloys has also been invited to discussions, although the details are not being shared at the moment and these claims cannot be verified.
Fullard’s memo had additional words of encouragement to employees:
“We recognise that this period of uncertainty is extremely challenging. We want to reassure you that safeguarding jobs and ensuring the long-term sustainability of our ferrochrome operations remain our highest priorities. We will continue to engage openly with employees, unions, government, and all relevant stakeholders as the process progresses.”
The looming Section 189 process requires extensive consultations before retrenchments can be triggered. We will publish the full details of the outcome. DM